Tax Rates


Its been awhile since I've written. In the runs of my reports taxes are much higher than I actually pay. For NC state taxes, it probably has to do with the tax rate which has changed to a flat 5.75%. The state tax rate I'm calculating is over 6% in your program. For Federal Taxes my average tax rate from your report is around 25%, but the average tax rate I'm actually paying is <20%.

Have you thought of having the ability for users to input tax rates. For example I would put in 5.75 for NC. I would also put in the actual average tax rate I'm paying for Federal taxes.

What are your assumptions for deductions. Naturally state income and property taxes are quite important. So are charitable contributions, but I'm not sure how you take those into account.

Lastly, for Regular Asset Income how do you distinguish between realized and unrealized gains? Do you assume all dividends are qualified?



dan royer's picture

I'll have to ask Larry or Mike to answer that one. My understanding is that the tax tables are updated each year to reflect current state tax law. It could be that there's some confusion about nominal vs real dollars in the tables, but I'm not sure.

In the Assumptions area, under the Taxes tab, there's a place to indicate the percentage of gains that come as cap gains / dividend rate, and there's a place to enter the amount of unrealized gains.

Please call me later today at 617 834 2148 to discuss. best, Larry

I have just returned and finally read the post to my question. When would a convenient time to call Larry?

dan royer's picture

Call him any time. If he's busy hhe'll set up a time to call.

I am having the same issue with taxes in the report far higher for Federal and SC state taxes. Can I override or otherwise adjust this? I'm not sure what you are suggesting one do in the Assumptions > taxes window.

Also, and possibly related, on the Assets and Savings > Current Saving window I'm seeing a figure in "real asset income" that must be increasing my taxable income; it is over 100k. Where does that figure come from?

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